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  • Super contributions – too much can mean extra tax

    There are caps on the amount you can contribute to your superannuation each financial year to be taxed at lower rates. If you contribute over these caps, you may have to pay extra tax. This could be as high as 94% in some cases.

    The cap amount and how much extra tax you have to pay may depend on your age, which financial year your contributions relate to, and if:

    • the contributions are concessional (before tax)
    • the contributions are non-concessional (after tax)
    • you elect to have your excess contributions released from super after we send you a determination.

    From 1 July 2017, your non-concessional contributions cap will be nil if you have a total super balance greater than or equal to $1.6 million at the end of 30 June of the previous financial year. If your non-concessional cap is nil, any non-concessional contributions you make plus any excess concessional contributions you elect or are unable to have released will be excess non-concessional contributions. You will pay excess contributions tax of 47% on these contributions.

    To find out how much you contributed into your super fund to ensure you don’t go over the caps, contact your super fund or phone us on 13 10 20.

    Note: If you exceed your non-concessional contributions cap in a financial year, you must lodge a tax return for that year and you may have to pay extra tax.

    Once we have your superannuation contribution data and tax return for the corresponding year, we will issue you a determination, seeking your preferred option in how to manage the tax owing.

    System enhancements significantly delayed the automatic processing and issuing of some determinations. We have now rectified the issue and you may receive communication from us about this.

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      Last modified: 16 Jul 2020QC 19749